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If land that is capital property is sold in an ITA 85(1) rollover...

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Accounting

If land that is capital property is sold in an ITA 85(1) rollover and the elected amount is less than its ACB because of a decline in FMV, a capital loss will always be immediately allowed.
A. True because the elected amount is less than the ACB, which is a capital loss.
B. False because, if the elected amount is less than the ACB, that would result in a capital gain.
C. False because if the seller and purchaser were affiliated persons, the capital loss would be initially disallowed.
D. True because a key benefit of ITA 85(1) rollovers is that capital losses will always be immediately allowed.
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